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Chapter EIM01035

Document Cited in Related
Vincent
Published date22 May 2014
Record NumberEIM01035
CourtHM Revenue & Customs
IssuerHM Revenue & Customs
S237A ITEPA 2003 Exemption for workplace charging of electric and plug-in hybrid vehicles

From 6 April 2018, where an individual is provided with workplace facilities for charging a battery of a vehicle used by them (including as a passenger), no taxable benefit arises in respect of costs relating to the provision of electricity at those facilities if certain conditions are met.

What the exemption covers

The exemption covers:

  • the cost of electricity
  • the cost to the employer of providing the charging facilities
  • any connected services

The exemption does not apply to the reimbursement or payment of an employee’s personal expenditure in respect of charging a battery of a vehicle away from the employer’s premises. For example, it does not apply where the employer reimburses the employee’s costs of charging a battery of their vehicle at a motorway service station.

Where an employer reimburses an employee’s electricity costs for charging the battery of a vehicle other than on the employer’s premises and the electricity is then used on a business journey, the employee may be entitled to Approved Mileage Allowance Payments (AMAPs) and/or Mileage Allowance Relief (MAR) (see EIM31205).

Qualifying conditions

The following requirements must all be satisfied for the exemption to apply.

1. Location of charging facilities

The charging facilities must be provided at or near an employee’s workplace. See EIM21685 concerning what should be considered ‘at or near’.

The exemption does not apply where the charging facilities are at the employee’s home.

2. Provided to employees generally

Charging must be available to either:

  • all the employer’s employees generally, or
  • all the employer’s employees generally at the employee’s workplace
3. Optional remuneration arrangements

The benefit will...

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